The median price rose from $160,400 in January 2012 to $163,000 last month.

Sales volume rose 15.6 percent from 238 homes sold in January 2012 to 275 last month, also according to the realtor association.

“So this is a good sign, a very good sign,” said Patrick S. Nolan who owns five area Century 21 offices and will be president of the Realtor Association in 2014.

Robert P. Molta, broker and owner at Real Living Realty Professionals which has five area locations, said traffic is up at open houses, especially for open houses at new construction.

“We are finally seeing some consumer confidence,” Molta said. “What we are seeing is really a pent-up demand from the consumer.”

The recession killed demand and flooded the market with foreclosed upon homes.

Now, Molta said there are fewer foreclosures and fewer homes that were bank-owned homes coming up for sale at discount prices. Builders have held back on making new homes over the past few years.

Inventory in the Pioneer Valley fell 10.6 percent last month from 2,391 homes in January 2012 to 2,137 last month, according to the Realtor Association .

Nolan said there were just 58 homes for sale in Agawam at one point last week, and half were new construction. That’s as bare as he’d ever seen the cupboard in the busy suburban town.

“A move in condition home in a good price in a desirable neighborhood is hard to find,” Nolan said.

Molta also warned that an improving economy might start to drive up interest rates. A 30-year fixed rate mortgage averages 3.53 percent, according to FreddieMac.com. Last year at this time it averaged 3.98 percent.

Taking a five-year view, the median price is down 1.1 percent from $164,750 in January 2009.

In Hampden County, the region's largest housing market, sales rose 36.4 percent from 151 to 206. The median price rose 9.9 percent from $137,000 to $150,500.

In Hampshire County, sales fell 14.8 percent from 61 to 52. The median sales price rose 8.4 percent from $220,000 to $238,500.

In Franklin County, sales fell 34.6 percent from 26 to 17. The median price rose 14.9 percent from $142,750 to $164,000.